The proposal, which has been developed by Leamington FC and Warwick District Council (WDC), will see the construction of a 5,000-capacity football stadium.
Plans also include conference facilities, a gym, bar, café and community facilities.
This is all set to go on the land adjacent to Europa Way and Gallows Hill, south of Leamington and Warwick.
The new stadium would mean that Leamington FC, nicknamed the Brakes, would be located nearer to the town centre and public transport routes.
At WDC’s full council meeting on Wednesday night, councillors gave their overwhelming support for the purchase of land to allow for the development of the stadium.
The next steps will be for the council to do a detailed study of the delivery options for a new sports and community hub for the area which could include housing, a new primary school, community hall and medical centre.
Councillors also gave the go-ahead for WDC to acquire Leamington’s current site at Harbury Lane, which has been identified as a possible location for a Gypsy and traveller site.
Leamington FC would move from Harbury Lane after the new community football stadium is completed and ready for occupation and use.
Leamington FC’s chairman Jim Scott said: “Leamington FC very much welcomes this key step forward.
“A new stadium with improved access and facilities will help us fulfil our aspirations to move into higher leagues. It will also allow us to develop and expand our presence in the community through our programme of football-related activities.
“This will give more people the opportunity to get involved, be it as a player, spectator or user of the facilities.”
Cllr Andrew Mobbs, leader of WDC, said: “I’m delighted with this decision.
“These exciting and ambitious plans will not only help to secure the future of our local football club, but have the potential to bring a new focal point for the community with huge benefits for the health, fitness and well-being of our residents.”
Cllr Peter Phillips, WDC’s portfolio holder for housing and property services, added: “We want Warwick District to be a great place to live, work and visit.
“This very exciting proposal not only has the potential to create much-needed housing, but could also bring great benefits to the community.”